APPLIED MATERIALS INC /DEAMAT

APPLIED MATERIALS INC /DE Fair Value Disclosure

10-KFiled Dec 12, 20253 min read
Fair Value Measurements
Assets Measured at Fair Value on a Recurring Basis
The following table presents our fair value hierarchy for our financial assets (excluding cash balances) measured at fair value on a recurring basis:
 
 October 26, 2025October 27, 2024
 Level 1Level 2TotalLevel 1Level 2Total
 (In millions)
Assets:
Available-for-sale debt security investments
Money market funds*$2,264 $— $2,264 $3,512 $— $3,512 
Bank certificates of deposit and time deposits— 184 184 — 103 103 
U.S. Treasury and agency securities2,109 319 2,428 2,684 14 2,698 
Non-U.S. government securities— 5 5 — 5 5 
Municipal securities— 473 473 — 460 460 
Commercial paper, corporate bonds and medium-term notes— 3,102 3,102 — 2,590 2,590 
Asset-backed and mortgage-backed securities— 616 616 — 654 654 
Total available-for-sale debt security investments$4,373 $4,699 $9,072 $6,196 $3,826 $10,022 
Equity investments with readily determinable values
Publicly traded equity securities$2,110 $— $2,110 $723 $— $723 
Total equity investments with readily determinable values$2,110 $— $2,110 $723 $— $723 
Total$6,483 $4,699 $11,182 $6,919 $3,826 $10,745 
 ______________________________
*Amounts as of October 26, 2025 and October 27, 2024 include $71 million and $91 million, respectively, invested in money market funds related to deferred compensation plans. Due to restrictions on the distribution of these funds, they are classified as restricted cash equivalents and are included in deferred income taxes and other assets in the Consolidated Balance Sheets.
We did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of October 26, 2025 or October 27, 2024.
Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis
Our equity investments without readily determinable values consist of equity investments in privately held companies. We elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and are required to account for any subsequent observable changes in fair value within the statements of operations. These investments are classified as Level 3 within the fair value hierarchy and periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. Impairment losses on equity investments in privately held companies, included in the above table, were not material during fiscal 2025 and 2024 and were $121 million during fiscal 2023. These impairment losses are included in interest and other income (expense), net in the Consolidated Statement of Operations.
Other
The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash equivalents, accounts receivable, commercial paper notes, and accounts payable and accrued expenses, approximate fair value due to their short maturities. At October 26, 2025, the aggregate principal amount of long-term senior unsecured notes was $6.5 billion, and the estimated fair value was $6.2 billion. At October 27, 2024, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion and the estimated fair value was $5.1 billion. The estimated fair value of long-term senior unsecured notes is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. See Note 9 of the Notes to the Consolidated Financial Statements for further detail of existing debt.

Historical Timeline

Fiscal YearFiled
2025Dec 12, 2025Showing above
2024Dec 13, 2024
2023Dec 15, 2023
2022Dec 16, 2022
2021Dec 17, 2021
2020Dec 11, 2020
2019Dec 13, 2019
2018Dec 13, 2018
2017Dec 15, 2017
2016Dec 15, 2016
2015Dec 9, 2015

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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